Neeja Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations, using super-variable costing. Variable cost per unit: Direct materials $20 Fixed costs per year: Direct labor $113,400 Fixed manufacturing overhead $94,500 Fixed selling and administrative expenses $165,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the company's product is $150 per unit. Production (units) Sale (units) Year 6,3001 6,100 Year 2 6,300 6,500 For external reporting purpose, the company has to use GAAP-consistent absorption accounting. Q.: The absorption costing income for Year 1 is: A:$ Myrtle, Inc. is facing a problem with their 4th quarter absorption costing net operating income on December 25. Their net operating income target is $250,000 and the data so far is as follows: Sales Revenue $600,000 ($200/unit) Variable COGS $240,000 ($80/unit) Fixed manufacturing overhead $70,000 Fixed S&A $50,000 Variable S&A: Commission on Sales 3% Finished Goods Inventory as of December 25 450 units Up until this quarter, Myrtle, Inc. has had a policy of having zero inventories at the end of each quarter. No further sales are possible during the year. Mr. H, the CEO, is planning to produce more units for inventory in the last week of December to meet the net operating income target. Q: How many additional inventory units above the December 25 Finished Goods balance need to be produced in the fourth quarter to meet the net operating income target if the sales commission is left unchanged? (Express your answer to the nearest whole number.) A.: units Una Corp. has two divisions: Parts and Assembly. The Parts Division makes Part Z2 for sale to outside customers: Production capacity Demand from outside customers Per unit data for Z2 for outside customers: 25,000 units per month 23,000 units per month Selling price Variable production cost Variable selling cost Allocated fixed cost $20.00 $15.00 $2 $1.25 The Assembly Division has designed a new product that also uses Part 22. For its new product, the Assembly Division would need 2,800 units of Z2 each month, and the Parts Division would not incur variable selling costs for these units. Q.: Assuming the Parts Division would cut back on sales to outside customers in order to supply Z2 to the Assembly Division (if necessary), what is the lowest acceptable transfer price from the viewpoint of the selling division? (Do not round intermediate calculations. Round the final numbers to two decimal places.) A:$ per unit Kalina Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: $100 Selling price per unit Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs per year: Fixed manufacturing overhead Selling and administrative expense $9 $20 $11 $14 $45,000 $59,200 Production Sales 5,000 units 4,500 units Q.: What is net operating income under variable costing in the first year? A:$